Enzymotec (NASDAQ: ENZY) and Praxair (NYSE:PX) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Dividends

Praxair pays an annual dividend of $3.15 per share and has a dividend yield of 2.2%. Enzymotec does not pay a dividend. Praxair pays out 58.9% of its earnings in the form of a dividend. Praxair has raised its dividend for 12 consecutive years.

Profitability

This table compares Enzymotec and Praxair’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enzymotec -14.52% -3.88% -3.58%
Praxair 14.10% 27.93% 8.25%

Valuation & Earnings

This table compares Enzymotec and Praxair’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enzymotec $47.01 million 5.49 -$4.56 million ($0.29) -38.79
Praxair $10.92 billion 3.73 $3.54 billion $5.35 26.61

Praxair has higher revenue and earnings than Enzymotec. Enzymotec is trading at a lower price-to-earnings ratio than Praxair, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Enzymotec and Praxair, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enzymotec 0 2 0 0 2.00
Praxair 2 7 4 0 2.15

Enzymotec presently has a consensus price target of $8.00, indicating a potential downside of 28.89%. Praxair has a consensus price target of $136.89, indicating a potential downside of 3.84%. Given Praxair’s stronger consensus rating and higher probable upside, analysts plainly believe Praxair is more favorable than Enzymotec.

Risk and Volatility

Enzymotec has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Praxair has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

27.9% of Enzymotec shares are held by institutional investors. Comparatively, 85.3% of Praxair shares are held by institutional investors. 0.2% of Praxair shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Praxair beats Enzymotec on 13 of the 16 factors compared between the two stocks.

Enzymotec Company Profile

Enzymotec Ltd. is a nutritional ingredients and medical foods company. The Company’s technologies, research expertise and clinical validation process enables it to develop solutions across a range of products. The Company operates in two segments: Nutrition segment and VAYA Pharma segment. Both of the Company’s segments offer a range of products that leverage its lipid-related offerings. Its product suite addresses the entire human life-cycle, from infancy to old age, and comprises ingredients in products ranging from infant formula to nutritional supplements, as well as branded medical foods, sold only under a doctor’s supervision. It markets its product portfolio to established global consumer companies and physicians and target large and growing consumer health and wellness markets. The Company’s clinically-validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases.

Praxair Company Profile

Praxair, Inc. is an industrial gas company. The Company’s operations are organized into five segments, four of which have been determined on a geographic basis of segmentation: North America, Europe, South America and Asia. In addition, it operates its surface technologies business through its subsidiary, Praxair Surface Technologies, Inc., which represents the fifth segment. Its operations consist of two product lines: industrial gases and surface technologies. Its industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases). It also designs, engineers and builds equipment that produces industrial gases primarily for internal use. Its Surface Technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders.

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